Order No. 2006-A-83

February 17, 2006

File No. M4210/A957-2

Under Licence No. 977155, Air Canada also carrying on business as Air Canada Jetz (hereinafter Air Canada) is authorized to operate a non-scheduled international service, medium aircraft, a non-scheduled international service, large aircraft, and a non-scheduled international service, all-cargo aircraft, between Canada and any other country.

On February 13, 2006, Air Canada filed with the Canadian Transportation Agency (hereinafter the Agency) a request for an exemption from the application of paragraph 18(c) of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR) until June 30, 2006 to permit the display of the U2 decals on an Airbus A-320 aircraft while this aircraft is being operated between Canada and foreign countries and between points in foreign countries.

Paragraph 18(c) of the ATR provides that:

the licensee shall not operate an international air service, or represent by advertisement or otherwise the licensee as operating such a service, under a name other than that specified in the licence.

In its application, Air Canada submits that it has entered into a charter agreement with CCE Tour I (USA) Inc. to operate entity charter flights to transport the music band U2 during the second phase of its North American Tour as well as its tour in South America. Air Canada states that pursuant to Order No. 2005-A-577 dated October 11, 2005, the Agency exempted Air Canada from the provisions of paragraph 18(c) of the ATR to permit the display of the U2 decals while its Airbus A-320 aircraft was being operated between Canada and foreign countries until January 15, 2006. Prior to the expiry of the said Order, the U2 decals were removed from the aircraft and since the removal, all charter flights for U2 have been operated in its regular Air Canada livery.

Air Canada states that U2 has now requested Air Canada to affix the decals to the Airbus A-320 aircraft displaying the U2 name and logo for the South American portion of the band's tour. Air Canada advises that it has also contracted with third parties to perform entity charters with the said aircraft between Canada and the United States of America while it is not being used to transport the music band U2 or shortly thereafter.

Accordingly, Air Canada states that compliance with the provision of paragraph 18(c) of the ATR is undesirable and unnecessary as all services will be operated under the name of Air Canada and no other representations will be made in relation to the U2 name or otherwise.

The Agency has carefully considered Air Canada's request and is of the opinion that compliance with paragraph 18(c) of the ATR by Air Canada is impractical in this case.

Accordingly, pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, the Agency hereby exempts Air Canada from the application of paragraph 18(c) of the ATR to permit the display of the U2 decals on an Airbus A-320 aircraft while this aircraft is being operated between Canada and foreign countries and between points in foreign countries until June 30, 2006.

A copy of this Order shall be carried on board the aircraft and be provided to foreign authorities upon request.